Minutes 03/21/2006 - Laserfiche WebLink

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March 21. 2006 restore, maintain and protect. One might call this a "catching-up" budget as we restore funding in a number of key areas in order to get caught up with overdue commitments in public education, City employee compensation, and capital projects. We are working hard to maintain basic municipal services at current levels with two exceptions. In codes and law enforcement we have recommended modest expansions of service. We have also been aggressive in containing the size of the workforce. There are no net new positions in the General Fund of our Operating Budget though there are shifts in the use of personnel. And we are especially mindful to protect the City's financial health and strengthen our fiscal stability. In the recent past Portsmouth has managed under a "credit watch". We must to continue to demonstrate to the bond-rating agencies that we are working to develop our revenue streams as we strive to keep expenditures under control and maintain a healthy fund balance. These three challenges -- restore, maintain and protect -- were in the forefront of our minds as we developed these budgets for your review, discussion and adoption. Budget Highlights Some highlights of this budget are: . $6 million increase in funding for Portsmouth Public Schools thus continuing the joint efforts of the City Council and the School Board to make significant progress in teacher salaries, modernizing school facilities and improving student achievement scores . $5.5 million increase in funding for City employees compensation thus fully implementing all the recommendations in the Compensation Study approved in December 2005 . $3.2 million in additional debt service funding to support City Council's priorities for capital projects developed since the adoption of the FY06 budget . Devoting two cents of the real estate tax ($1.0 million) to initially fund the new courthouse complex project . A $0.06 reduction in the real estate tax rate from $1.44 to $1.38 . Increases in water and sewer rates, solid waste and storm water fees to address outdated facilities and strengthen financial operations at a cost of $5.80 per month to the average residential homeowner Budget Themes There are six major themes that focused the formulation of this budget proposal: . Funding City Council Priorities . Commitment to Education . Investing in Employees . Citizen Engagement and Neighborhood Transformation . Restructured Capital Improvement Program . Lowering Real Estate Tax Rate